The Fundamental of Data-Driven Investment from Coursera

In this course, the instructor will discuss the fundamental analysis of investment using R programming. The course will cover investment analysis topics, but at the same time, make you practice it using R programming. This course's focus is to train you to do the elemental analysis for investment management that you might need to do in your job every day.

Additionally, the study note to do using Python programming will be provided.

The course is designed with the assumption that most students already have a little bit of knowledge in financial economics. Students are expected to have heard about stocks and bonds and balance sheets, earnings, etc., and know the introductory statistics level, such as mean, median, distribution, regression, etc.

The instructor will explain the detail of R programming for beginners. It will be an excellent course for you to improve your programming skills. If you are very good at R programming, it will provide you an excellent opportunity to practice again with finance and investment examples.

Professor Youngju Nielsen creates the course with the assistants of Keonwoo Lim and Jeeun Yuen.

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Coursera Course recommendations before this course for those who are not familiar with basic R programming:

https://www.coursera.org/projects/getting-started-with-r

https://www.coursera.org/learn/business-analytics-r

https://www.coursera.org/specializations/statistics-with-python

What's inside

Syllabus

Analyzing Past Returns and Forecasting Future Returns

You will learn how to read stock price time-series data from CSV file and analyze the past return data. After you understand the past return data, you will determine what impacts stocks' return and make a future return forecasting model using regression.

Understanding the Risk Using Factors

First of all, you will learn how you can gauge investment strategy using backtesting. You learned the first component of investment strategy, returns, in the first week. You will expand your study to assessing investment risks. To understand stocks' risks, you will calculate covariance and correlation matrix using historical time-series stock return data. You will extend this to market factor and three-factor models to understand the risk you are facing with your investment. Finally, you will calculate factor exposure using a 3-factor model from week 2 and separate common factor risk and idiosyncratic risk of the stock.

Portfolio Analysis and Optimization

In this week, This week, you will download various global ETFs and make global asset allocation portfolio using mean-variance optimization.

Performance Analysis

You will learn about various portfolios other than a mean-variance optimized portfolio. Additionally, you will add a constraint to your portfolio optimization. In reality, you might need to consider more than volatility measured by return standard deviation. You will grasp the concepts of VaR, maximum drawdowns and CvaR, etc.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Teaches fundamental analysis of investment using R programming, suitable for aspiring or practicing investment managers

Covers essential investment analysis techniques, including return analysis, forecasting, risk assessment, portfolio optimization, and performance analysis

Taught by Professor Youngju Nielsen, an experienced finance professional and instructor

Provides practical hands-on exercises to reinforce learning and enhance students' analytical skills

Recommended prerequisites include basic knowledge of financial economics and introductory statistics

Suitable for students with a background in finance, economics, or related fields

Reviews summary

Well-received data analytics course

According to students, this course is a great data analytics course with engaging content that is well-suited for beginners. Students also appreciate the instructor for being amazing and knowledgeable. Overall, students say that this is a well-structured course that is worth the time and effort.

Suitable for students with little to no experience.

"I consider it not easy at all for beginners, like me, but very challenging and interesting."

High ratings from most students.

"Best Course to get acquainted with data analytics in Finance."

"Great course and amazing teacher !!!"

Instructor is highly regarded by students.

"Great course and amazing teacher !!!"

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in The Fundamental of Data-Driven Investment with these activities:

Refresh Basic Statistics

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Review foundational knowledge of basic statistics concepts to establish a strong base for the course.

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Review mean, median, and mode
Practice calculating standard deviation
Refresh hypothesis testing concepts

Complete Online R Programming Tutorials

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Refining your R programming skills will enhance your ability to implement the analysis techniques discussed in the course.

Browse courses on R Programming

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Identify recommended online tutorials or courses for R programming.
Work through the tutorials at your own pace, completing exercises and practice problems.

Form a Study Group

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Collaborating with peers will boost your understanding of the material while practicing core skills.

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Reach out to classmates via email, discussion boards, or social media.
Schedule regular meetings to discuss course material, complete assignments together, and quiz each other.

Seven other activities

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Solve R Programming Exercises

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Engage in repetitive R programming exercises to reinforce understanding and enhance coding proficiency.

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Work through online R coding challenges
Solve programming problems from textbooks
Participate in coding competitions

Analyze Historical Stock Data

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Practicing data analysis techniques reinforces your skills and deepens your understanding of the concepts.

Browse courses on R Programming

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Obtain historical stock price data from sources like Yahoo Finance or Google Finance.
Create visualizations to analyze trends and patterns in the data using R programming.
Calculate statistical measures such as mean, median, and standard deviation.

Follow R Programming Tutorials

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Seek out and complete guided tutorials to supplement course material and refine programming skills in R.

Browse courses on R Programming

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Explore online resources like Coursera and edX
Follow video tutorials on YouTube
Read documentation and user guides

Create a Course Summary

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Organizing and reviewing course materials regularly improves retention and understanding.

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Compile notes, slides, and assignments from each module.
Summarize the key concepts and formulas covered.
Review your course summary regularly to reinforce your learning.

Develop an Investment Strategy

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Creating your own investment strategy puts your knowledge into practice and strengthens your decision-making abilities.

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Define your investment goals and risk tolerance.
Research different asset classes and investment vehicles.
Create a diversified portfolio using mean-variance optimization techniques in R programming.

Develop a Stock Analysis Tool

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Build a tool to analyze stock data and gain practical experience applying course concepts in a real-world context.

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Design the tool's features and functionality
Implement data processing and analysis algorithms
Create a user-friendly interface

Conduct a Stock Market Simulation

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Engage in a simulated trading environment to apply investment strategies, make decisions, and evaluate outcomes.

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Establish investment objectives and constraints
Research and select stocks
Track performance and make adjustments

Career center

Learners who complete The Fundamental of Data-Driven Investment will develop knowledge and skills that may be useful to these careers:

Quantitative Analyst

Quantitative Analysts use mathematical and statistical models to analyze financial data. They may develop trading strategies, risk management models, and other financial products. A course like The Fundamental of Data-Driven Investment may be useful as it will teach you the basics of investment analysis and how to use data to make informed investment decisions.

See salaries and explore the career path for Quantitative Analyst

Investment Analyst

Investment Analysts research and analyze investments for individuals and institutions. They may specialize in a particular type of investment, such as stocks, bonds, or real estate. A course like The Fundamental of Data-Driven Investment may be useful as it will teach you the basics of investment analysis and how to use data to make informed investment decisions.

See salaries and explore the career path for Investment Analyst

Private Equity Investor

Private Equity Investors invest in private companies, typically with the goal of improving their financial performance and selling them for a profit. A course like The Fundamental of Data-Driven Investment may be useful as it will teach you the basics of investment analysis and how to use data to make informed investment decisions.

See salaries and explore the career path for Private Equity Investor

Financial Engineer

Financial Engineers develop and implement financial instruments and models. They may work for investment banks, hedge funds, or other financial institutions. A course like The Fundamental of Data-Driven Investment may be useful as it will teach you the basics of investment analysis and how to use data to make informed investment decisions.

See salaries and explore the career path for Financial Engineer

Hedge Fund Manager

Hedge Fund Managers manage investment funds that invest in a variety of assets, including stocks, bonds, and commodities. They may use a variety of investment strategies to generate returns for their investors. A course like The Fundamental of Data-Driven Investment may be useful as it will teach you the basics of investment analysis and how to use data to make informed investment decisions.

See salaries and explore the career path for Hedge Fund Manager

Venture Capitalist

Venture Capitalists invest in early-stage companies with high growth potential. They may provide funding for research and development, marketing, and other business expenses. A course like The Fundamental of Data-Driven Investment might be useful as it will teach you the basics of investment analysis and how to make informed investment decisions.

See salaries and explore the career path for Venture Capitalist

Investment Banker

Investment Bankers help companies raise capital by issuing new stock or debt. They may also advise companies on mergers and acquisitions. A course like The Fundamental of Data-Driven Investment may be useful as it will teach you the basics of investment analysis and how to value companies.

See salaries and explore the career path for Investment Banker

Risk Manager

Risk Managers assess and manage financial risks for organizations. They may work for banks, insurance companies, or other financial institutions. A course like The Fundamental of Data-Driven Investment may be useful as it will teach you the basics of investment analysis and how to use data to make informed investment decisions.

See salaries and explore the career path for Risk Manager

Data Scientist

Data Scientists use data to solve business problems. They may work in a variety of industries, including finance, healthcare, and retail. A course like The Fundamental of Data-Driven Investment may be useful as it will teach you how to analyze data and make informed decisions.

See salaries and explore the career path for Data Scientist

Investment Consultant

Investment Consultants provide advice on investments to individuals and institutions. They may specialize in a particular type of investment, such as stocks, bonds, or real estate. A course like The Fundamental of Data-Driven Investment may be useful as it will teach you the basics of investment analysis and how to use data to make informed investment decisions.

See salaries and explore the career path for Investment Consultant

Compliance Officer

Compliance Officers ensure that organizations comply with laws and regulations. They may work for banks, insurance companies, or other financial institutions. A course like The Fundamental of Data-Driven Investment may be useful as it will teach you the basics of investment analysis and how to use data to make informed investment decisions.

See salaries and explore the career path for Compliance Officer

Financial Planner

Financial Planners help individuals and families plan for their financial future. They may provide advice on investments, retirement planning, and estate planning. A course like The Fundamental of Data-Driven Investment may be useful as it will teach you the basics of investment analysis and how to make informed investment decisions.

See salaries and explore the career path for Financial Planner

Portfolio Manager

Portfolio Managers are responsible for making investment decisions for individuals and institutions. They may specialize in a particular type of investment, such as stocks, bonds, or real estate. A course like The Fundamental of Data-Driven Investment may be useful as it will teach you the basics of investment analysis and how to use data to make informed investment decisions.

See salaries and explore the career path for Portfolio Manager

Financial Advisor

Financial Advisors help individuals and families plan for their financial future. They may provide advice on investments, retirement planning, and estate planning. A course like The Fundamental of Data-Driven Investment may be useful as it will teach you the basics of investment analysis and how to make informed investment decisions.

See salaries and explore the career path for Financial Advisor

Financial Analyst

Financial Analysts study an organization's financial health using accounting principles. You might examine a company's revenue, profit margins, and other financial data to determine its ability to meet its debt obligations and make a profit. A course like The Fundamental of Data-Driven Investment may be useful as it will teach you how to analyze a company's financial data to make informed investment decisions.

See salaries and explore the career path for Financial Analyst